Reaffirming the importance of LNG and Hydrogen in Singapore’s energy landscape.
The Asia Hydrogen & LNG Markets Conference, hosted by S&P Global Commodity Insights, began with insights shared by Ms Low Yen Ling, Minister of State, Ministry of Trade and Industry & Ministry of Culture, Community and Youth. In her Welcoming Remark, she shed light on the significant role of Liquefied Natural Gas (LNG) and hydrogen in Singapore's energy future. Here are the highlights of her speech:
The world continues to face two critical energy challenges—the every-fluctuating energy markets and the global energy transition.
Ms Low acknowledged the world's ongoing struggle with these two crucial energy challenges. To tackle these complexities, strong leadership is paramount. "As government leaders, policy thinkers, and business leaders, you must balance these objectives while adapting to technological advancements and making informed decisions," she emphasised.
LNG will continue to be a cornerstone of Singapore's long-term energy transition.
Ms Low underscored that LNG will continue to play a substantial role in Singapore's long-term energy transition. The procurement and supply of LNG will be centralised to ensure the nation's energy security. Moving forward, LNG procurement and supply will be centralised to safeguard Singapore’s energy needs.
“We in Singapore are of the view that LNG remains a necessary transition fuel, allowing low carbon technologies to mature and to scale up low carbon energy sources. LNG is the cleanest form of fossil fuel available today. Furthermore, LNG offers the stability, and reliability needed for Singapore's energy security. This is underpinned by its well-established infrastructure and global supply chains," she said.
To emphasise the importance of stable energy prices, Ms Low further added: "Singapore relies on natural gas to produce 95 percent of our electricity. To safeguard the security of our gas supply, Singapore will procure and supply gas centrally for our power sector.
"This move will guarantee a steadier and secure gas supply as we diversify our sources and achieve greater economies of scale through greater bulk procurement. In turn, this will contribute to more stable electricity prices. Until a cleaner and cost-competitive fuel that is backed by a global supply chain becomes available, LNG will certainly remain a crucial component of our energy needs," she added.
Singapore is taking intentional steps to pave the way for hydrogen to become a commercially viable and economical global commodity.
Singapore is actively taking measures to make hydrogen a commercially viable and cost-effective global commodity, she said. "First, we are working closely with industries to study the deployment of hydrogen in various sectors. In order for hydrogen to be a sustainable fuel, it needs to be properly backed by infrastructure and a global supply chain.
"Next, for hydrogen to become a globally traded commodity, countries must come together as policymakers, government, business leaders on policies, regulations, trade guidelines, and emissions methodology," she added.
Finally, Ms Low said: "Singapore is doubling down on our R&D investments in low carbon hydrogen technologies. More research is required to reduce the cost of hydrogen to a level that is suitable for widespread deployment. We aim to encourage collaboration between industry players, academia, and Singapore agencies and ministries, to achieve new breakthroughs. We look forward to receiving high-quality proposals and strong industry participation."
Ms Low's insights underscore Singapore's proactive approach to navigating the complexities of today's energy landscape. As the energy markets continue to evolve, innovation, technology and resolute leadership remain critical in the journey towards a net zero future. These elements will remain critical in guiding Singapore's progress in bridging the decarbonisation gap for both LNG and hydrogen.